Home Technology peripherals It Industry China's car sales top the global connected car market

China's car sales top the global connected car market

Jan 18, 2024 am 11:51 AM
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According to the latest data released by market research organization Counterpoint Research, in the third quarter of 2023, global sales of connected cars increased by as much as 28% year-on-year, showing impressive growth momentum. Under this trend, two out of every three cars sold are equipped with embedded interconnection systems, demonstrating the unstoppable trend of automobile interconnection.

China performs well in the global connected car market, accounting for 33% of the market share, far ahead of other countries. The U.S. and European markets follow closely behind, accounting for more than 75% of global connected car sales, forming the main sales pattern.

Chinas car sales top the global connected car market

With the rapid development of electric vehicles and autonomous driving technology, the demand for connectivity within cars is also growing. Currently, 4G technology maintains its absolute dominance in this field, with a sales share of over 95%. However, the application of 5G technology in the automotive industry has made relatively slow progress and failed to meet the industry's early expectations. Although 5G can deliver higher speeds and lower latency, automakers and operators face several challenges. First, the coverage of 5G networks is still limited, which means that stable connections may not be available in some areas. Secondly, the cost of 5G technology is higher and requires more infrastructure investment. Finally, according to the editor's understanding, the car manufacturer

has three main reasons for the slow application and promotion of 5G technology in the automotive field. First, the lack of 5G infrastructure along highways limits the coverage and availability of 5G signals. Secondly, unique 5G application scenarios have not yet appeared in the car, and there is a lack of innovative features to attract consumers. Finally, there are problems in the supply chain, including immaturity of equipment and technology and high costs. These factors jointly restrict the popularity of 5G in the passenger car market.

Chinas car sales top the global connected car market

Soumen Mandal, senior analyst at Counterpoint Research, pointed out that as consumers continue to increase their awareness of technology and their demand for connectivity, the growth of non-connected cars Sales are steadily declining. According to data from the third quarter of 2023, the world's top five automobile groups account for nearly 45% of connected car sales. Among them, Toyota Group leads the market with a sales share of 12%, followed by Volkswagen Group. General Motors Group, Hyundai-Kia Motors Group and Stellantis also rounded out the top five. This trend shows that consumer demand for connected cars is growing, and automakers need to accelerate the application of connected technologies to meet market demand. The smart features and convenience of connected cars will become dominant factors in the future automotive market.

Neil Shah, vice president of research, pointed out that in developing economies, the connectivity of cars is becoming a major differentiating factor in the market and is favored by more and more consumers. It is expected that by 2030, more than 95% of new passenger cars will be equipped with embedded interconnection systems, which will further promote changes in the global automotive market.

Although 4G connections still dominate the automotive field, as the number of L3 and above cars on the market increases, the application of 5G connections will gradually increase. It is expected that by 2026, the automotive industry's adoption of 5G technology will reach a turning point. By 2030, more than 90% of connected cars sold will be equipped with embedded 5G connections, which will bring broader development space and innovation opportunities to the automotive industry.

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